Debt (USD $)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Jun. 22, 2011

Debt:

Note 9 - Loan Payable

NOTE 9 – LOAN PAYABLE

On December 20, 2012, we received gross proceeds of $100,000 pursuant to the terms of a Loan Agreement dated December 20, 2012.  The loan is secured by a Deed of Assignment for certain inventory and all proceeds from the sale of the inventory.  The loan is payable on June 23, 2013, six months from the date of the agreement.  We prepaid interest of $25,000 for the term of the loan and $15,000 for loan costs, which are being amortized over the life of the note.  We recognized $1,486 and $0 of interest expense and $892 and $0 for loan cost amortization within interest expense for the years ended December 31, 2012 and 2011, respectively.

Total principal payments for future years for the Convertible Bridge Loans, the Convertible Debentures described in Note 7, the Convertible Bridge Loans described in Note 8 and the Loan Payable are as follows as of December 31, 2012:

		December 31, 2012
2013		4,526,750
	$	4,526,750

Face amount

$ 4,117,750

$ 4,117,750

$ 4,117,750

Original issue discount

(155,443)

(465,072)

(617,750)

Fair Value of Convertible Debentures

3,962,307

2013

$ 4,526,750

Schedule of maturities of debt

Total principal payments for future years for the Convertible Bridge Loans, the Convertible Debentures described in Note 7, the Convertible Bridge Loans described in Note 8 and the Loan Payable are as follows as of December 31, 2012:

		December 31, 2012
2013		4,526,750
	$	4,526,750

Schedule of Carrying Values of Convertible Debentures

		December 31, 2012		December 31, 2011		June 22, 2011           (Issue Date)
Face amount	$	4,117,750	$	4,117,750	$	4,117,750
Original issue discount		(155,443)		(465,072)		(617,750)
		3,962,307		3,652,678		3,500,000
Beneficial conversion feature and warrant allocation		(415,811)		(1,138,766)		(1,447,812)
Carrying value	$	3,546,496	$	2,513,912	$	2,052,188